How does DPX's Buyer Premium model work to get you paid for all of your hard work?
DPX shifts the agent compensation from the Seller paying the commission to co-op brokers to the Buyer paying the agent compensation on the DPX platform via the Buyer Premium.
The Contract/Sale Price of the property will include the DPX Buyer Premium (typically 7%, but equal to the prevailing commission rate in the market where the property is located) and the Sales Contract will reflect that.
DPX deducts 0.5% of the Contract/Sale Price from the Buyer Premium for the platform fee (example: DPX platform fee of 0.5% on $500,000 is $2,500).
DPX then pays both brokerages involved in the transaction 50% of the remaining Buyer Premium (example: $500,000 sales price with 7% Buyer Premium = $35,000 - DPX platform fee of $2,500 = $32,500 / 2 = $16,250 paid to both the Listing Broker and Buyer Broker).
During the close of escrow, the Buyer Premium is characterized as a commission to DPX, a Florida brokerage. This is to make sure that we are compliant with laws and regulations.
We then deduct 0.5% from the Buyer Premium/Commission to DPX and instruct the escrow company to send half of the remainder to the Listing Broker and half to the Buyer Broker. This payment is characterized as a referral payment from DPX to those brokerages. Again, this is to ensure legal compliance.
Because we are using tried and true title/escrow closing process, payments will be processed in exactly the same way you are used to today.